Biogen-Idec: Time To Buy?
by Michael Shulman
BiotechBlitz
No. It isn't time to buy BIIB.
Should I end this post right here? No. I've spent the last two weeks NOT writing and, instead, seeing what other blogs are doing to elicit feedback. The answer is pretty simple: They're writing about stocks and the news about diseases that directly point to stocks.
So, here we go with gen 2 of the BiotechBlitz.
Biogen put itself up for sale due to pressure from outside investors -- namely Carl Icahn. The stock ran up big time. I told my subscribers to get out after the run up and they cleaned up, since we had the position a long time. Now the stock has since come way back down.
So, what's going on? Was the run up pure trading frenzy or is there value in the company and the stock that makes it a buy at current prices of around $70?
Yes and no.
Yes, there is a lot of value if someone buys BIIB as it's quite a valuable asset to a dinosaur big-pharma outfit.
No, if Biogen-Idec doesn’t get bought, both from an investment and a trading perspective.
If the sale of the company is called off, the stock will temporarily go down between $5 and $10, maybe more. I believe it put itself up for sale to get Icahn off its back -- otherwise there is no logical reason to sell the company, given the current and future success of approved products in the marketplace and BIIB's pipeline.
And, if no one has made an offer, yet, I don't think one is coming (I bought some crow at the local grocery store just in case I'm wrong about this). But the company is not worth more than $70 bucks a share at current growth projections, even though I believe multiple sclerosis treatment Tysabri will become the industry standard within five years.
Speaking of Tysabri, and since you all like stocks, my next post will be about Tysabri partner Elan (ELAN). And if you want to read more about how the whole Biogen thing went down, check out Mike Huckman’s blog. He is the best pharma reporter in the business (CNBC) and his blog can be found at http://www.cnbc.com/id/15837675.
BiotechBlitz is a regular contributor to BioHealth Investor
_____________
BiotechBlitz
No. It isn't time to buy BIIB.
Should I end this post right here? No. I've spent the last two weeks NOT writing and, instead, seeing what other blogs are doing to elicit feedback. The answer is pretty simple: They're writing about stocks and the news about diseases that directly point to stocks.
So, here we go with gen 2 of the BiotechBlitz.
Biogen put itself up for sale due to pressure from outside investors -- namely Carl Icahn. The stock ran up big time. I told my subscribers to get out after the run up and they cleaned up, since we had the position a long time. Now the stock has since come way back down.
So, what's going on? Was the run up pure trading frenzy or is there value in the company and the stock that makes it a buy at current prices of around $70?
Yes and no.
Yes, there is a lot of value if someone buys BIIB as it's quite a valuable asset to a dinosaur big-pharma outfit.
No, if Biogen-Idec doesn’t get bought, both from an investment and a trading perspective.
If the sale of the company is called off, the stock will temporarily go down between $5 and $10, maybe more. I believe it put itself up for sale to get Icahn off its back -- otherwise there is no logical reason to sell the company, given the current and future success of approved products in the marketplace and BIIB's pipeline.
And, if no one has made an offer, yet, I don't think one is coming (I bought some crow at the local grocery store just in case I'm wrong about this). But the company is not worth more than $70 bucks a share at current growth projections, even though I believe multiple sclerosis treatment Tysabri will become the industry standard within five years.
Speaking of Tysabri, and since you all like stocks, my next post will be about Tysabri partner Elan (ELAN). And if you want to read more about how the whole Biogen thing went down, check out Mike Huckman’s blog. He is the best pharma reporter in the business (CNBC) and his blog can be found at http://www.cnbc.com/id/15837675.
BiotechBlitz is a regular contributor to BioHealth Investor
_____________
posted by Nico at
4:39 PM
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